Cognizant Technology Solutions Corp. (NASDAQ: CTSH) announced its board of directors authorized a $2 billion increase to its existing share repurchase program and raised its 2026 share buyback target to $2 billion from $1 billion.

The technology services company said it expects to complete the additional $1 billion in share repurchases during the second quarter of 2026. With the board's approval, approximately $3.45 billion remains under the share repurchase authorization as of May 17, 2026.

"Our plan to increase the amount of share repurchases reflects our strong conviction in the long-term opportunity AI creates and our critical role in it as an AI builder," said CEO Ravi Kumar S. "We believe our current share price significantly undervalues those prospects."

Chief Financial Officer Jatin Dalal stated that the company's balance sheet and free cash flow provide flexibility to return capital to shareholders while continuing growth investments, including strategic mergers and acquisitions.

Cognizant said it will draw down $1 billion from its existing revolving credit facility in connection with this plan and the anticipated closing of its previously announced acquisition of Astreya. The company maintained its long-term capital allocation framework, including flexibility for strategic acquisitions.

The announcement was made in connection with CEO Kumar's participation in a fireside chat at the J.P. Morgan Global Technology, Media and Communications Conference.